THE news over recent days that international IT services company LogicaCMG is setting up a new base in Bridgend was welcome for the strong positive signal it sends out about the workforce of Wales.

THE news over recent days that international IT services company LogicaCMG is setting up a new base in Bridgend was welcome, not just for the 700 jobs created but for the strong positive signal it sends out about the workforce of Wales.

When announcing the investment, the company made it clear that the availability of the right calibre of staff in the region was the over-riding factor in reaching its decision.

These are not standard, low-paid or short-term jobs.

On the contrary, most appear to be high-skilled, well-paid, graduate-level posts with excellent prospects.

It's the kind of employment we want to see a lot more of in future.

Logica's selection of Bridgend broadcasts to other potential investors that, not only do they have confidence in the area's current workforce, but also have faith in the ability of the region's education and training system to keep producing the people they need for years to come.

The firm's operation is very much a "people" business, built on long-term relationships with blue chip clients and relying on ready access to skilled people with the right attitudes and outlooks.

To continue attracting firms of this calibre we need to ensure that Wales' network of learning providers is aware of, and totally responsive to, the needs of such enterprises.

I had the pleasure recently of visiting nearby Bridgend College and hearing from principal Roger Hampton how they are preparing local young people for new higher-level employment opportunities such as these.

The same business-sensitive approach was echoed by Bridgend's director of education later the same day.

Clearly local schools also see the improving career opportunities for their pupils arising on their own doorstep.

Interestingly LogicaCMG already has two bases in Wales, one of them in Bridgend. As a result they were in an ideal position to know whether the area could sustain a high-skilled, professional labour intensive operation.

This is significant because a big proportion of the higher-value-added jobs which could potentially be created in Wales over the next few years, will come from firms already located here.

These enterprises will assess the local and regional labour market and, hopefully, decide that it is possible to cultivate the necessary skills to move their businesses up the value chain.

It's not a question of having a ready-made workforce able to walk straight into specific jobs.

The issue is one of ensuring that workers - and new entrants to the workforce - have the fundamental generic skills that enable them to be trained for such posts.

For example, in the Future Skills Wales 2003 survey, Welsh employers predicted that the availability of high level IT skills would be one of the most important factors in determining whether or not their firms could grow in future.

This latest investment announcement by LogicCMG certainly underlines the wisdom of listening to such forecasts.

Learning providers are res-ponding increasingly to the signals from industry, as indeed are many individuals.

For instance, the latest figures on the use of Individual Learning Accounts show that almost 50% of people who have accessed this form of funding have used it to undertake some kind of IT course. Clearly they can see which way the employment wind is blowing.

We must do our utmost to encourage learning trends such as these which reflect real opportunities in the marketplace. That's the key driver behind Elwa's National Planning and Funding System, due to be introduced in August next year.

Its aim is to channel public funds very deliberately towards learning provision which meets the proven skill needs of people and businesses.

The more that firms in Wales appreciate the growing human asset they have at their disposal, the more they will feel confident to invest in creating better, higher paid and more sustainable employment.

And the more they are willing to make such a commitment, the more businesses outside these borders will sit up and pay attention to what Wales has to offer.